Westpac, one of Australia’s largest banks, has implemented a ban on customers transferring funds to Binance, the world’s largest cryptocurrency exchange. The move is aimed at reducing losses incurred by customers falling victim to scams.
The decision to block transfers to certain cryptocurrency exchanges. Including Binance, comes as Westpac’s internal data reveals that investment scams account for approximately half of all scam losses. One-third of scam payments directly go to cryptocurrency exchanges.
Scott Collary, Westpac’s Group Executive of Customer Services and Technology, emphasized the potential savings that can be achieved through this action. While acknowledging the legitimate role of digital exchanges in the financial ecosystem. Collary expressed concern over scammers increasingly exploiting overseas exchanges. Customers often face difficulties when they scammed only after their money has left the country, making recovery challenging.
Westpac Bans Binance Transfers
Westpac plans to roll out the trial block on exchanges in phases over the coming weeks. Meanwhile, Binance announced that it is currently unable to accept PayID payments in Australian dollars due to a decision by its third-party payment provider. The exchange is actively seeking an alternative provider to continue offering AUD deposits and withdrawals.
Australia’s Westpac Binance Ban, major banks, strengthen its anti-scam measures by prohibiting the transfer, a move aimed at protecting customers from fraudulent activities in the cryptocurrency space
Additionally, This development follows the cancellation of Binance’s Australian financial services license to sell derivatives by the Australian Securities and Investments Commission (ASIC) a month ago. ASIC found that Binance had misclassified numerous retail customers as wholesale investors. As the largest cryptocurrency exchange globally. With 128 million customers and processing $65 billion in daily trades. Binance is now facing increased scrutiny and legal challenges.
In March, the US Commodity Futures Trading Commission sued Binance. Its CEO, Changpeng Zhao, alleges willful evasion of US law. The complaint accuses the company of facilitating illegal activity on its platform. Knowingly exploiting loopholes to bypass Know Your Customer regulations.
Investment scams continue to be a major concern, in the Australian Competition. Consumer Commission’s Scamwatch reported over 500,000 scam reports in April alone, resulting in losses exceeding $3.1 billion. Customers most commonly reported using bank transfers as the payment method. While cryptocurrency-related scams saw a significant increase, with 3,910 people reporting losses of $221.3 million—a 162.4% rise.
Furthermore, By implementing this ban, Westpac aims to protect its customers from falling victim to scams facilitated through cryptocurrency exchanges. The action aligns with the broader efforts of regulators and financial institutions to combat fraudulent activities and ensure the security of their customer’s assets.
